Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to VIP Shop Holdings Limited's first quarter 2022 earnings conference call. At this time, I would like to turn the call to Ms. Jessie Jung, VIP Shop's head of investor relations. Please proceed.

Thank you, operator. Hello, everyone, and thank you for joining VIP Shop's first quarter 2022 earnings conference call. With us today are Eric Shen, our co-founder, chairman, and CEO, and David Tsui, our CFO. Before management begins their prepared remarks, I would like to remind you that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our Safe Harbor Statements in our earnings release and public filings with the Securities and Exchange Commission, which also applies to this call to the extent any forward-looking statements may be made. Please note that certain financial measures used on this call, such as non-GAAP operating income, non-GAAP net income, and non-GAAP net income per ADS are not presented in accordance with U.S. GAAP. Please refer to our earnings release for details relating to the reconciliation of our non-GAAP measures to GAAP measures. With that, I would now like to turn the call over to Mr. Eric Shen.

Okay. Good morning and good evening everyone. Welcome and thank you for joining our first quarter 2022 earnings conference call. We had slower than expected quarter due to the resurgence of COVID-19 cases in China on top of a really challenging micro-environment which depended the general customer sentiment. Starting in March, With tightened controls and city lockdowns in many places, our warehousing and logistic capacity has been undergoing serious delays or disruptions. This has undermined our fulfillment efficiency and further discouraged consumers from spending, especially on discretionary items. Despite great pressure on sales and consumption, we remain on track to execute on our merchandising strategy to further strengthen our competitiveness for the long term. We are delighted to see that our proven business model enabled us to sustain a healthy level of profit and achieve the resilient margins through this spring operations. In the first quarter, we continued to provide support for co-brands, offering them more leverage to improve sales through our upgrade merchant platform. We also brought in many new and trendy brands, enriching product selection on our platform. Furthermore, we expanded our high-value customers. Our active SuperVIP customers grew by 7%. 37% year-over-year and contributed about 38% of online net GMV in the first quarter. With the COVID-19 outbreak developing, we have responded quickly to changing consumer demand. By leveraging our merchandising capabilities, we added a range of product offerings in non-apparel categories, including products for everyday use, This helped in part offset the soft demand in apparel categories. While we remain cautious ahead amid ongoing COVID-19 flash ups, we are strongly committed to our strategic position as a discount platform for branded products. We will take this opportunity to look to create exceptional value for our brand partners and the consumers At this point, let me hand over the call to our CFO, David Shui, who will go over our financial results.